Audit Report Project
1. Access the SEC EDGAR database (www.sec.gov) and retrieve Apple's 2015 3rd Quarter. Extract the financial statements and update the excel spreadsheet. Project the income statement and balance sheet for year-end 2015.
2. Tell me about Apple. Describe about the company's primary business activities providing information about the company's history, position within the industry, recent developments, and future direction (2-3 pages).
a. A brief historical summary
b. A list of competitors
c. The company's position within the industry
d. Recent developments within the company/industry
e. List at least two risk factors identified in the Management Discussion and Analysis section of the 10K.
Sources: 10K, Annual Report, Corporate Website Business Periodicals
3. Prepare and analyze condensed, common-sized, and trend analysis financial statements for Apple. Describe three questions reflecting your professional skepticism you would ask the controller based on your projections. (1 page)
4. Identify an account and research the accounting standard using the FASB codification. Explain if you think the audited financial report demonstrates full disclosure.
5. Fill in industry comparisons for Apple in the Excel Spreadsheet. Compute financial statement ratios for Apple and describe Apple's profitability, efficiency, liquidity. Add at least one more ratio to the spreadsheet.
- Sources: Reuters.com Under the "News and Markets" tab, click on Stocks.
- Enter the ticker symbol: Appl
- Across the top screen look at extensive menus of options.
- For ratios and industry comparison choose the Financials option from this menu
Finance.yahoo.com
6. Based on your analysis of the financial statements, identify accounts that you consider significant and worthy of closer attention during the audit.
7. Map the accounts you consider to be significant accountats to management assertions.
8. Describe the internal control environment that you believe should exist to reduce the amount of audit work required based on the concept of AR=DR*IR*CR
Attachment:- apple nu project student version.xls